1.1                          A bill for an act 
  1.2             relating to waste; providing for individual sewage 
  1.3             treatment system funding; amending Minnesota Statutes 
  1.4             2000, sections 17.117, subdivision 5; 103F.725, 
  1.5             subdivision 1a; proposing coding for new law in 
  1.6             Minnesota Statutes, chapter 446A. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 17.117, 
  1.9   subdivision 5, is amended to read: 
  1.10     Subd. 5.  [USES OF FUNDS.] Use of funds under this section 
  1.11  must be in compliance with the federal Water Pollution Control 
  1.12  Act, section 446A.07, and eligible activities listed in the 
  1.13  intended use plan authorized in section 446A.07, subdivision 4.  
  1.14  The commissioner must allocate the percentage determined under 
  1.15  section 446A.052, subdivision 2, to available appropriations 
  1.16  each biennium for the funding of individual sewage treatment 
  1.17  systems. 
  1.18     Sec. 2.  Minnesota Statutes 2000, section 103F.725, 
  1.19  subdivision 1a, is amended to read: 
  1.20     Subd. 1a.  [FINANCIAL ASSISTANCE; LOANS.] (a) Up to 
  1.21  $36,000,000 of the balance in the water pollution control 
  1.22  revolving fund in section 446A.07, as determined by the public 
  1.23  facilities authority, may be provided to the commissioner for 
  1.24  the establishment of a clean water partnership loan program. 
  1.25     (b) The agency may award loans for up to 100 percent of the 
  1.26  costs associated with activities identified by the agency as 
  2.1   best management practices pursuant to section 319 and section 
  2.2   320 of the federal Water Quality Act of 1987, as amended, 
  2.3   including associated administrative costs. 
  2.4      (c) Loans may be used to finance clean water partnership 
  2.5   grant project eligible costs not funded by grant assistance. 
  2.6      (d) The interest rate, at or below market rate, and the 
  2.7   term, not to exceed 20 years, shall be determined by the agency 
  2.8   in consultation with the public facilities authority. 
  2.9      (e) The repayment must be deposited in the water pollution 
  2.10  control revolving fund under section 446A.07. 
  2.11     (f) The local unit of government receiving the loan is 
  2.12  responsible for repayment of the loan. 
  2.13     (g) For the purpose of obtaining a loan from the agency, a 
  2.14  local government unit may provide to the agency its general 
  2.15  obligation note.  All obligations incurred by a local government 
  2.16  unit in obtaining a loan from the agency must be in accordance 
  2.17  with chapter 475, except that so long as the obligations are 
  2.18  issued to evidence a loan from the agency to the local 
  2.19  government unit, an election is not required to authorize the 
  2.20  obligations issued, and the amount of the obligations shall not 
  2.21  be included in determining the net indebtedness of the local 
  2.22  government unit under the provisions of any law or chapter 
  2.23  limiting the indebtedness. 
  2.24     (h) Based on the percentage determined under section 
  2.25  446A.052, subdivision 2, at least that percentage amount must be 
  2.26  used for funding individual sewage treatment systems, subject to 
  2.27  available appropriations each biennium. 
  2.28     Sec. 3.  [446A.052] [INDIVIDUAL SEWAGE TREATMENT SYSTEM 
  2.29  FUNDING.] 
  2.30     Subdivision 1.  [DEFINITION.] "Individual sewage treatment 
  2.31  system" has the meaning given in section 115.55, subdivision 1, 
  2.32  paragraph (g). 
  2.33     Subd. 2.  [PERCENTAGE FUNDING REQUIREMENT.] The authority 
  2.34  must determine biennially what percentage of dwelling units in 
  2.35  the state are serviced by individual sewage treatment systems.  
  2.36  Based on this percentage and available appropriations, and 
  3.1   notwithstanding other law to the contrary, the authority must 
  3.2   allocate the same percentage amount for funding individual 
  3.3   sewage treatment systems under sections 446A.07 and 446A.072.